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 SEBI CIRCULARS

Circular No.

Date

Subject

Brief

Ref. No. / Volume No.

L/IDR/1/2006/3/4

03/04/2006

Introduction of new Chapter VI-A in the SEBI (DIP) Guidelines,2000

Under rule 9 of IDR rules, the IDRs issued under this rule shall be listed on the recognized Stock Exchanges (s) in India. For such issues SEBI has drafted new format of Listing Agreement in conjunction with the IDR Rule 2004 & Chapter VIA of the SEBI guidelines, 2000

Sec. 11(1) & 11(A) of SEBI Act, 1922.

IMD/CIR NO.1/64057/06

04/04/2006

Rationalisation of Initial Issue Expenses and Dividend distribution procedure for Mutual Funds

In order to rationalize the initial issue expenses & dividend distribution procedure for Mutual Fund, the Initial Issue Expenses are permitted to for Closed – ended scheme only & Dividend Distribution Procedure for unlisted scheme, liquid scheme, listed scheme, advertisement etc.

Sec. 11(1) of SEBI Act, 1922.

Regulation 77 of SEBI Mutual Fund, 1996.

 

IMD/FII/20/2006

05/04/2006

FII investments in Debt Securities

The Government of India & RBI clarified that FII investment shall be restricted to only listed debt securities of companies. The FIIs subscription to commercial papers would be within the ceiling of US$ 1.5 billion fixed for debt instrument.

The revised individual limit for investment in Government Securities & limit for Corporate debt will be advised to the 100% debt FIIs/ Sub-Accounts separately.

 

IMD/FII/19/2005

IMD/FII/16/2004

 

IMD/CIR NO.2/65348/06

21/04/2006

Introduction of Gold Exchange Traded Funds in India

The trustees reserve the right to change the source for determining the exchange rate. The AMC shall record in writing the reasons for change in the source for determines the exchange rate.

In case of recurring exp. For a GETF, the limits applicable to equity scheme as specified in regulation 52(6) shall be applicable.

As there are no indices catering to the Gold sector / Securities linked to gold, Currently GETF shall be bench marked against the price of Gold.

 

Sec. 11(1) of SEBI Act, 1922.

 

IMD/CIR NO.3/65370/06

21/04/2006

Dividend Distribution Procedures for Mutual Funds

This Circular has issued guidelines on captioned subject. It is clarified that the guidelines on dividend distribution procedure are applicable to all Mutual Fund Scheme/ Plans.

Sec.11(1) of SEBI Act, 1922.

Regulation 77 of SEBI Mutual Fund,1996.

 

MRD/DOP/SE/CIR-6/2006

16/06/2006

Gazette notification no. S.O. 783(E) dated May 22, 2006 pertaining to SEBI (Mutual Funds) (Second Amendment) Regulations 2006

Margining in Cash Market.
 

It has been decided that the risk arrays should be updated intra-day in the cash market as has been done in the derivative market. The applicable  VaR margin rates shall be updated at least 5 times in a day

Sec.11(1) of SEBI Act, 1922.

Circular 07/2005 of SEBI Act.1922

 

IMD/CIR NO.1/70353/06

28/06/2006

Circular for Portfolio Managers

Circular to all Portfolio Managers registered with SEBI
 

There is modification in clause which followed by Portfolio Manager in deployment of client A/c. Earlier the Portfolio Manager’s decision was final & can not be called in question but now it can be on the ground of mala fide, fraud, conflict of interest or gross negligence.

Sec.11(1) of SEBI Act, 1922.

IMD/CIR NO.5/70559/06

30/06/2006

Undertaking from trustees for new scheme offer document

With certification of AMC, the trustees shall also certify that “ the trustees have ensured that the (name of the scheme/ fund) approved by them is a new product offered by (name of the MF) and is not a minor modification of the existing scheme/ fund/ product while filing a new scheme offer document.

Sec.11(1) of SEBI Act, 1922.

Regulation 77 of SEBI Mutual Fund,1996.

 

MRD/DOP/SE/CIR-8/2006

13/07/2006

Mandatory requirement of Permanent Account Number (PAN) for transactions in the cash market

SEBI (Foreign Institutional Investors) (Amendment) Regulations 2006
 

For KYC norms in the Cash Market, with a view to facilitate sound audit trail, it has been decided that PAN will be mandatory for all the entities/ person who are desirous of transacting in the cash market.

Sec.11(1) of SEBI Act, 1922.

IMD/CIR NO.6/72245/06

20/07/2006

Revised Monthly Cumulative Report (MCR) and Annual Statistical Report (ASR)

Modification in format of Monthly Cumulative Report [MCR] & Annual Statistical Report [ASR].

The details of new scheme launched shall be reported in the MCR.

 

IMD/CIR No.3/2564/04 dated Feb 5, 04.

MFD/CIR No.2/110/02 dated April 26, 2002.

 

MRD/DOP/DEP/CIR-09/06

20/07/2006

Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications

This Circular covered the following aspects.

Exemption to certain categories of entities registered with SEBI & verification of documents for proof of address. Exemption to NRI & PIO. Exemption to a person having PAN but not PAN Card. Exemption to UN entities & multilateral agencies which are exempted from paying taxes/ filing tax return in India.

Exemption to investor residing in the state of Sikkim. Varification of PAN Card details in case of HUF, AOP, Partnership firm, minor etc.

NSDL/POLICY/2006-07 dated May 3, 2006 & CDSL/OPS/DP/657 & CDSL/OPS/DP/666 dated Feb 7, 2006 & Mar 8, 2006 respectively.

IMD/CIR NO.7/73202/06

02/08/2006

 

Investment in ADRs/GDRs/Foreign Securities and overseas ETFs by Mutual Funds

This Circular deals with conditions for investment in ADRs/ GDRs/ Foreign Securities, Overseas Exchange Traded Funds.

MFD/CIR No.4/052/99 dt. 1st Sept. 99

MFD/CIR No.5/062/99 dt. 30th Sept. 99

MFD/CIR No17/419/02  dt. 30th March, 02

MFD/CIR No.18/21826/02 dt.

7th Nov. 02

MFD/CIR No.02/6855/03 dt. 4th April, 03

MFD/CIR No.07/5573/04 dt. 19th March, 04

IMD/CIR NO.3/50241/05 dt.26th Sept. 05

IMD/CIR NO.8/73580/06

04/08/2006

Filing of Annual Information Return to be filed by Mutual Funds

This is with reference to the Annual Return required to be filed by Mutual Fund u/s 285 Bain the Income Tax Act under which the trustees of Mutual Funds or such other person managing the affairs of the Mutual Funds as may be duly Authorised by the trustees in this behalf have to report specified financial transaction in electronic media to Income Tax department giving PAN of the transacting parties as An

Sec.11(1) of SEBI Act, 1922.

IVD/IDI/PKN/JJ/06

08/08/2006

 

Informal Guidance in respect of restricted grey list in terms of clause 4.3 of Schedule I under Regulation 12(1) Part (B) & Code of Conduct whether it is permissible for directors/officers/designated employees to invest in securities with a view to trade.

Sec.11(1) of SEBI Act, 1922.

IMD/CIR NO.9/74364/06

14/08/2006

Capital Protection Oriented scheme and Revision in Fees

The proposed portfolio structure indicated  in the offer document & KIM must be rated by a SEBI registered credit rating agency from the viewpoint of assessing the degree of certainty for achieving the objective of capital protection

Sec. 11(1) of SEBI Act, 1922.

Regulation 77 of SEBI Mutual Fund, 1996.

 

IMD/FII&C/23/2006

15/09/2006

FII investments in Upper Tier II Instruments

The individual limit for investment in upper tier II instrument will be advised to the 100% debt FIIs / Sub accounts separately

 

DNPD/CIR 31/2006

22/09/2006

Procedure for re-introduction of derivatives contracts and modified position limits

Circular deals with the procedure for introduction, dropping & re-introduction of derivative contracts, market wide position limits for stock based derivative & position limit for index derivative were reviewed by the secondary market advisory committee.

 

MRD/DOP/DEP/SE/CIR-13/06

26/09/2006

Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications

Market participants have made Suggestion on various issues of SEBI, includes-

Exemption from the requirement of verification with the original PAN Card in respect of the institutional client.

Exemption for the Joint account holder from the mandatory requirement of PAN.

Extending in Present Dead Line.

 

 

IMD/CIR NO. 10/77780/06

28/09/2006

Standing Committee - Computerised Trading System
Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plans
 

This Circular provide guidelines regarding definition, applicability, fixation of uniform cutoff timings, cut-off timing for liquid fund scheme plans. Etc

SEBI/IMD/CIR No.8/ 5611/04 dt. 19th Mar. 2004

SEBI/IMD/CIR No.9/ 6016/04 dt. 25th Mar. 2004.

 

MIRSD/DR 1/FC/CIR-15/2006

29/09/2006

Payment of fees by Stock Brokers

This regulation deals with fees payment in respect of off market transactions entered in to by Stock Broker & which aare reported to by that Stock Exchange.

Notification No. S.O.1600(E), dt. 25th Sept.2006. Sche. III A, Sche. 04

IMD/CIR NO.11/78450/06

11/10/2006

Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)

This Circular provide guidelines regarding Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s)

IMD/CIR NO. 10/77780/06

DOF/VCF/CIR NO. 1/78911/2006

18/10/2006

Common Key        Personnel between Mutual Funds and Venture Capital Funds

No key Perssonel of a mutual fund shall be on the board of Asset Management Company/ Investment Manager/ Investment Committee of a Venture Capital Fund

 

MRD/DOP/DEP/SE/CIR-17/06

27/10/2006

Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications III

NRIs/ PIOs who have already opened BO Accounts or Trading Accounts without PAN shall required to comply with the mandatory requirement of PAN on or before 31.12.2006, failing which such Accounts shall be made inoperable by the depository/ departmental Participant/ Broker.

MRD/DOP/DEP/SE CIR 17/06

MRD/DOP/DEP/SE CIR

13/06

 

IMD/CIR/12/80083/2006

20/11/2006

Dispatch of account statement

Mutual Fund Account Statement is sent to unit holder. The Account statement may be generated & issued along with Portfolio Statement or Annual Report.

MFD/CIR No.9/ 120/2000 dt. 24th Nov, 2000

SEBI/CFD/DCR/01/2006

11/12/2006

Interpretative Circular under Regulation 5 of The Securities And Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997

This Circular deals with transfer of shares from Venture Capital Fund or a foreign Venture Capital Investor to the Venture Capital undertaking or its promoter

 

MRD/DEP/CIR-20/06

11/12/2006

Dissemination of Tariff / Charge Structure of Depository Participants

This Circular deals with Dissemination of Tariff / Charge Structure of Depository Participants

 

IMD/FII&C/23/2006

14/12/2006

FII investments in Debt Securities

The limits of USD 2 billion and USD 1.5 billion will be allocated among the 100% debt and general 70:30 FIIs/Sub Accounts The 70:30 FIIs/ Sub Accounts are free to invest till the total investment limit reaches USD 540 million and USD 450 million in Government securities and Corporate Debt, respectively.

IMD/FII/20/2006 dated April 05, 2006

IMD/ FII&C/23/2006 dated September 15, 2006

 

IMD/CIR No.13/83589/07

 

4/01/2007

Investment in ADRs/GDRs/Foreign Securities and overseas ETFs by Mutual Funds

mutual funds can invest in ADRs/GDRs/Foreign Securities within overall limit of US$3 bn. This will be a  with a sub-ceiling for individual mutual funds which should not exceed 10% of the net assets managed by them as on March 31 of each relevant year and subject to a maximum of US $150 mn. per mutual fund.

IMD/CIR No.7/73202/06 dated August 2, 2006

IMD/CIR No.14 /84243/07

15/01/2007

Gazette notifications

F. No. SEBI/LAD/DOP/82534/2006 & F. No. SEBI/LAD/DOP/ 83065 / 2006 these two Gazette notifications related to gold valuation & format for submitting the bio-data of directors AMC & trustees to SEBI are enclosed.

 

MRD/DoP/SE/Cir-01/07

18/01/2007

Establishment of Connectivity with both NSDL and CDSL - Companies eligible for shifting from Trade for Trade Segment (TFTS) to Rolling Segment

At least 50% of non-promoter holdings as per clause 35 of Listing Agreement are in dematerialised mode before shifting the trading in the securities of the company from TFTS to Rolling settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.

 

IMD/FII & C/ 25 /2007

19/01/2007

FII investments in Debt Securities

Debt investment limit is extended from US $ 2 billion to US $ 2.60 billion The

incremental limit of US $ 0.6 billion is being added to the existing headroom of US $55 million available for investment by 100% debt FIIs in Government Securities/ T-Bills.

 

IMD/FII/20/2006 dated April 05, 2006

MIRSD/DPS III//Cir-01/07 

22/01/2007

Exclusive e-mail ID for redressel of Investor Complaints

SEBI has designated an exclusive e-mail ID of the grievance redressel division / compliance officer in which the investors would be able to register their complaints and also take necessary follow-up actions as necessary.

 

MRD/DoP/Cir-2/07

13/02/2007

Establishment of Connectivity with both NSDL and CDSL - Companies eligible for shifting from Trade for Trade Segment (TFTS) to Rolling Segment

At least 50% of non-promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to Rolling settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.

 

IMD/FII & C/26/2007

13/02/2007

SEBI (Foreign Institutional Investors) (Amendment) Regulations 2007

SEBI Regulation 2007 related to FII is amended and copy of Gazette Notification is given with this Circular.

SEBI/LAD/DOP/1446/2007 dated January 8, 2007

MRD/Dep/Cir-03/2007

13/02/2007

Safeguards to address the concerns of the investors on transfer of securities in dematerialized mode

On the basis of recommendations of the SMAC & in consultation with the depositories, Safeguards to address the concerns of the investors on transfer of securities in dematerialized mode are given in this Circular

Sec.11(1) of SEBI Act, 1922.

IMD/CIR No. 15/87045/2007

22/02/2007

Additional Reporting along with Monthly Cumulative Report - MCR

Commencing with the MCR for the Month of February ’07 an additional report on the overseas investment by Mutual Funds in ADRs/GDRs, foreign securities and overseas Exchange Traded Funds (ETFs) shall also be provided

MF/CIR/07/404/2000 dated July 31, 2000, circular SEBI/IMD/CIR No.3/2564/2004 dated February 5, 2004 and circular SEBI/IMD/CIR No. 6/72245/06 dated July 20, 2006

CBM/BOND/1/2007/01/03

02/03/2007

Corporate Bond Market - Reporting Platform to also be set up by NSE

It has now been decided that the National Stock Exchange of India Limited
(NSE) may also set up and maintain a reporting platform for corporate
bonds with immediate effect.
 

SEBI/CFD/DIL/
BOND/1/2006/12/12 dated December 12, 2006
 

CFD/DIL/LA/1/2007/20/03

20/03/2007

Amendments to the Listing Agreement for Debentures

Modification is made in clauses 3.3 and 2.14 (1) of the extant Model Listing Agreement for debenture.

SEBI/CFD/DIL/CIR-39/2004/11/01 dated November 1,2004

 

SEBI CIRCULARS 01/04/2008 TO 31/03/2009

 

MRD/DoP/MF/Cir-08/2008

03/04/2008

Exemption from mandatory requirement of PAN

 

 

investors residing in the state of Sikkim exempted from the mandatory requirement of PAN for their investments in mutual funds

MRD/DoP/Cir- 05/2007 dated April 27,

2007

MRD/ DoP/SE/Cir- 7 /2008

03/04/2008

Introduction of Direct Market Access (DMA) facility

This Circular deals with application for DMA facility, Risk management, liabilities of broker, other legal provisions.

Section 11 of the

Securities and Exchange Board of India Act, 1992

IMD/CIR No.1/122201/08

03/04/2008

Revision in Filing Fees and Registration Fees - Amendments to SEBI (Mutual Funds) Regulations, 1996

This circular deals with revision in filing fees and registration fees

Section 11(1) of the

Securities and Exchange Board of India Act, 1992 read with the provisions of

Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.

DNPD/ /Cir-36/2008

04/04/2008

 

Introduction of Bond Index

 

it has been decided that, to begin with, Exchanges shall construct a Bond Index

(both corporate & GOI) and disseminate the same. The Exchanges are free to decide whether

they want to adopt any of the Bond Index computation models available globally or may like to

develop their own model for computation of Bond Index.

sub-section (1) of Section 11 of

the Securities and Exchange Board of India Act, 1992

CFD/MB/IS/2/2008/07/04

07/04/2008

Revision in Filing Fees for Offer Documents - Amendments to SEBI (Merchant Bankers) Regulations, 1992, SEBI (SAST) Regulations, 1997 and SEBI (Buy Back of Securities) Regulations, 1998

Filing fees for offer documents are reduced in case of Buy back securities, custodian of securities, Merchant Bankers, Mutual Funds etc.

notification no. F. No.

11/LC/GN/2008/21669 dated March 31, 2008

CFD/DIL/CG/1/2008/08/04

08/04/2008

Corporate Governance in listed Companies - Clause 49 of the Listing Agreement

 

 

Clause 49 of the listing Agreement deals with Independent Director, relationship between inter- se, fAppointment &resignation of Independent Director. 

SEBI/CFD/DIL/CG/1/2004/12/10 dated October 29, 2004

IMD/CIR No.2/122577/08

08/04/2008

Overseas Investments by Mutual Funds

 

it has now been decided to

enhance the aggregate ceiling for overseas investment to US$7 bn.

SEBI/IMD/CIR No.7/104753/08

dated September 26, 2007

MRD/DoP/SE/Cir- 11/2008

 

17/04/2008

Collateral deposited by clients with brokers

 

 

 

 

Brokers should have adequate systems and procedures in place to ensure that client collateral is not used for any purposes other than meeting the respective client’s margin requirements / pay-ins. Brokers should also maintain records to ensure proper audit trail of use of client collateral.

SMD/SED/CIR/93/23321 on November 18, 1993

MRD/DoP/SE/Cir-10/2008

17/04/2008

Comprehensive Risk Management Framework for the cash market

 

the transactions executed on behalf of institutional clients in the cash market, it shall be permissible to maintain their entire margin in the form of approved securities with appropriate haircuts Necessary systems shall be put in place so as to enable adjustment of the pay-in obligations of the members from the cash component of the liquid assets deposited by them.

MRD/DoP/SE/Cir-07/2005 and MRD/DoP/SE/Cir-06/2008 dated February 23, 2005 and March 19, 2008

MRD/DSA/SE/ Cir-09 /08

17/04/2008

Interpretation of term shareholder having trading rights under Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006